Electronic parts distributor,
Avnet Inc.
's (
AVT
) business segment, Avnet Electronics Marketing Americas' operating
unit Avnet Embedded, recently declared the inclusion of various
advanced services in its product portfolio from two software
providers, namely, InduSoft and itSoftware. The company will be
also providing several support services and expert guidance to its
clients regarding embedded systems through its team of specialized
professionals. This was done with the clear intent of enhancing the
company's service offerings, especially in the region of the
Americas.
The company through its expert team will be assisting its
clients to select and access proper software solutions according to
their requirement. Moreover, with the addition of InduSoft and
itSoftware's various software solutions, Avnet Embedded will be
able to provide improved and secured software techniques to its
customers.
According to management, Avnet Embedded has always focused on
offering the best services to its clients to facilitate their
future growth. This initiative would not only broaden the company's
product portfolio in the embedded software market but also address
the need of improved software solutions of the customers more
efficiently.
The company's expansion plans comprising extension of the
existing operations and adding new products to its product lines,
particularly in the growing markets, are expected to boost its
long-term potential. During the fourth quarter of fiscal 2012,
revenues from Avnet's Electronics Marketing (EM) segment declined
5.0% from the year-ago quarter to $3.76 billion, within
management's guidance range of $3.75 billion - $4.05 billion.
However, we can still be optimistic about a better performance by
this segment in the upcoming quarters. For the first quarter of
fiscal 2013, the segment's sales are likely to be within the range
of $3.55 billion - $3.85 billion.
Avnet faces fierce competition from big players in the
semiconductor industry. One of the stalwarts here is
Arrow Electronics Inc.
(
ARW
), which remains an immensely formidable rival, especially in the
current times. In addition, there are several other big players
such as
Wesco International Inc
. (
WCC
) and
Anixter International Inc.
(
AXE
) in the industry.
The current Zacks Consensus Estimates for the first quarter of
fiscal 2013 and for fiscal 2013 are 84 cents and $4.11,
representing year-over-year growth of (6.79%) and 1.33%,
respectively. The company currently retains a Zacks #4 Rank, which
translates into a short-term 'Sell' rating. However, we are
maintaining a long-term 'Neutral' recommendation on the stock.
ARROW ELECTRONI (ARW): Free Stock Analysis
Report
AVNET (AVT): Free Stock Analysis Report
ANIXTER INTL (AXE): Free Stock Analysis Report
WESCO INTL INC (WCC): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research